The veteran Republican statewide politician said she’s “very, very nervous” about recent economic signs that include growing unemployment, an erratic stock market and weak housing sales. State government already is trying to get out from under billions of dollars of debt accumulated in recent years, she said.

“Illinois just could not handle it, and we’d have serious consequences,” Topinka said while addressing the City Club of Chicago. “Unfortunately, I think we’re holding our breath right now.”

Topinka said Illinois is pulling in less than expected from this year’s 67 percent increase in the income-tax rate, which makes her office’s job of paying the state’s bills that much harder. The state’s pile of unpaid bills totals $3.4 billion, not including the bills agencies have yet to send to her office.

Service providers are waiting an average of six months to be paid by the state, and Topinka said another recession could push the wait up to nine months should state revenues drop.

Democratic Gov. Pat Quinn wants to borrow money to pay down the backlog in one fell swoop, arguing the state would save money because interest on the loans would be lower than the rate the state must to providers pay for falling so far behind. But Topinka said borrowing would only add to the state’s problems, saying budget cuts must come elsewhere and any extra money coming in should be set aside to pay down the stack of bills.

The Civic Federation released a report Monday that projects the state will end the budget year with an $8.3 billion shortfall next June 30 if nothing is done.

Also Monday, Topinka defended her decision to give raises to some comptroller employees, arguing she plans to cut overall spending in the office to more than make up for the pay hikes. Topinka gave raises to 56 workers averaging 3.6 percent, according to an analysis the Associated Press reported Monday.